Fed rate cuts will support silver — MarketGauge's Schneider

According to Kitco News, the gold market has significant upside potential driven by economic uncertainty and geopolitical instability. However, Michele Schneider, chief market strategist at MarketGauge, highlights promising opportunities in silver.

Currently, Schneider maintains a neutral stance on both precious metals but plans to buy silver at a breakout above $34 per ounce. At the beginning of the week, prices for this precious metal rose more than 4% to $34.39 per ounce. That marked the strongest rally since mid-October.

Schneider predicts the Federal Reserve will cut interest rates soon due to US economic weakness, which should boost both gold and silver prices. Lower borrowing costs would particularly benefit silver by supporting industrial demand. Even early signals of monetary easing from the Fed could lift both metals, the analyst emphasizes.